UEM Sunrise, WCT and Jubilant abort RM3bil JV

Under the deal, UEM Sunrise via its unit Sunrise Bhd would invest RM215mil to acquire a 50% stake in WCT

PETALING JAYA: UEM Sunrise Bhd has called off a joint venture (JV) with WCT Holdings Bhd and Jubilant Courtyard Sdn Bhd to develop a RM3bil township in Serendah, Selangor.

“The parties have mutually agreed on June 30 to rescind the agreement in light of the current weak property market conditions,” the company said in a filing with Bursa Malaysia.

Under the deal, UEM Sunrise via its unit Sunrise Bhd would invest RM215mil to acquire a 50% stake in WCT’s wholly owned subsidiary Jubilant Courtyard.

Jubilant Courtyard owns 608 acres in Serendah that is being developed into an integrated mixed-development township.

If UEM Sunrise had pursued its plans, it was slated to be the group’s fourth project in Selangor and expected to be launched in 2017.

The group has in total 13,000 acres of land, which is close to 10,000 acres located in Johor with the rest in Selangor and the Klang Valley.

The revenue from the JV was estimated to be about RM300mil per annum for the next 10 years.